Corporate Governance in Islamic Saudi Banks - Bank Albilad as a Model

Abstract

This study was aimed at demonstrating the commitment of Saudi Islamic banks to apply the principles of banking governance, and to achieve this goal the researcher conducted a field study on those banks through the study of the reality of governance in the bank of Albilad as a model of study. The data of the field study was provided through a questionnaire covered a set of questions covered the six accepted principles of banking governance. Where the data of the study was analyzed through a set of statistical tests, the results of the study revealed a set of results that the Saudi Islamic banks adhere to the principles of banking governance related to the protection of the rights of shareholders and stakeholders and their treatment of justice, in addition to their commitment to transparency and disclosure with regard to the information published about them, and the commitment of board members and executives to professional conduct during the conduct of their various work, and that these banks perform their social responsibility effectively, while the results showed the lack of commitment of those banks to determine the powers and responsibilities of the boards of directors and executive departments. The study recommended the need for Saudi regulators to raise awareness of the principles of banking governance in Saudi banks, to show the role of these policies in attracting investment and enhancing market share, and to review saudi Islamic banks' policies regarding the limitation sought and responsibilities of their boards and executive departments.